System and method for managing investment risk in satellite operator companies

ABSTRACT

In order to mitigate risk of satellite investment loss, a satellite loss event or failure event for a satellite that will be operated by a satellite operator company is identified. Financial investors in the satellite operator company are identified. Actuarial data corresponding to prior satellite loss events or failure events substantially corresponding to the satellite loss event or failure event are identified. An investment loss mitigation insurance policy based at least in part on the identified actuarial data is developed. The investment loss mitigation insurance policy is offered to the identified financial investors. Premiums are received from financial investors that subscribe to the investment loss mitigation insurance policy, and the investment loss mitigation insurance policy is placed with an underwriting pool in exchange for at least a portion of the received premiums.

This application is a continuation of and claims priority to U.S.application Ser. No. 12/072,038, entitled System and Method for ManagingInvestment Risk in Satellite Operator Companies, filed on Feb. 22, 2008,(issued as U.S. Pat. No. 8,069,065) which is a regular U.S. patentapplication that claims priority to U.S. Provisional Application Ser.No. 60/892,096, entitled System and Method for Managing Investment Riskin Satellite Operator Companies, filed Feb. 28, 2007, the disclosures ofwhich are incorporated herein by reference.

The present invention relates to investment protection insurance andmore particularly to systems and methods to quantify risk for, determinepremium rates for and aggregate and protect equityholders anddebtholders in publicly and privately traded securities for loss ofinvestment in satellite operator companies in the event of total orpartial loss of satellites.

BACKGROUND

Property insurance covering loss or failure of satellites has existedfor more than forty years. This insurance is first party propertyinsurance to compensate the owner of a satellite in the event of thetotal or partial loss of its satellite either as a result of a failureat launch or during the in-orbit lifetime of the satellite. Thisinsurance customarily covered the capital cost of the satellite, theprice of the launch services (in the case of launch insurance) and thecost of the premium, usually on an agreed value basis (in the case oflaunch insurance) or based on the declining net book value of thesatellite (in the case of in-orbit insurance). At one time in the past,this insurance included a component of business interruption loss andextra expenses incurred in securing replacement capacity or modifyingground equipment to accommodate satellite deficiencies. This insurancehas been underwritten traditionally by a specialist property insurancemarket.

More recently, coverage has been placed on a one-off basis by a singlebondholder in a satellite project on an agreed value basis, rated andwith coverage terms substantially equivalent to satellite operatorproperty launch insurance. However, the terms of the policy, method ofplacement and other details of the process for issue of the policydiffer significantly from the terms, method of placement and otherdetails described herein.

Equity shareholders and bondholders in publicly and privately tradedsecurities of satellite operators still remain unprotected from thepossible drastic diminution in value of their securities resulting fromthe loss or failure of satellites owned by the satellite operators inwhich they have invested. This is because of the significant cost ofprocuring a separate policy of insurance rated on the same basis as theproperty insurance of the satellite operator, for relatively smallamounts of insurance on an agreed value basis, whereas the rating shouldmore properly be determined based on the likely diminution in value ofthe securities (versus the loss of the satellite) based on historicalexperience and for the actual diminution in value of the securitiesversus an agreed value that may have no bearing on the actual losssuffered.

The preceding description is not to be construed as an admission thatany of the description is prior art relative to the present invention.

SUMMARY OF THE INVENTION

In various aspects, the system and method mitigate risk of satelliteinvestment loss. The system and method comprise identifying at least onesatellite loss event or failure event for a satellite that will beoperated by a satellite operator company, and identifying a plurality offinancial investors in the satellite operator company. The system andmethod further comprise identifying actuarial data corresponding toprior satellite loss events or failure events substantiallycorresponding to the at least one satellite loss event or failure eventand developing an investment loss mitigation insurance policy based atleast in part on the identified actuarial data. The system and methodfurther comprise offering the investment loss mitigation insurancepolicy to the identified financial investors and receiving premiums fromfinancial investors that subscribe to the investment loss mitigationinsurance policy. The system and method further comprise placing theinvestment loss mitigation insurance policy with an underwriting pool inexchange for at least a portion of the received premiums.

In another aspect, the system and method further comprise identifying anactual satellite loss event or failure event, determining whether theactual satellite loss event or failure event is covered by theinvestment loss mitigation insurance policy, and responsive todetermining whether the actual satellite loss event or failure event iscovered, paying the financial investors. In another aspect, the systemand method further comprise identifying an actual satellite loss eventor failure event, determining whether the underwriting pool has salvagerights under the investment loss mitigation insurance policy, andresponsive to determining whether the underwriting pool has salvagerights, transferring financial instruments to the underwriting pool assalvage or a sharing of any future upside in share/bond performance,such as in the case of partial loss coverage. In another aspect of thesystem and method, the at least one satellite loss event or failureevent is a launch failure. In another aspect of the system and method,the at least one satellite loss event or failure event is a launch loss.In another aspect of the system and method, the at least one satelliteloss event or failure event is an in-orbit failure. In another aspect ofthe system and method, the at least one satellite loss event or failureevent is a premature in-orbit loss of capacity. In another aspect of thesystem and method, offering the investment loss mitigation insurancepolicy to the identified financial investors occurs a predeterminednumber of days before launch. In another aspect of the system andmethod, offering the investment loss mitigation insurance policy to theidentified financial investors occurs after successful in-orbitcheck-out and a predetermined number of days before annual expiry. Inanother aspect of the system and method, the underwriting pool is atleast partially in a financial products market. In another aspect of thesystem and method, the underwriting pool is at least partially in asatellite property insurance underwriting market. In another aspect ofthe system and method, identifying actuarial data corresponding to priorsatellite loss events or failure events substantially corresponding tothe at least one satellite loss event or failure event considersdifference between average financial instrument performance for a periodof time immediately before and after a satellite loss event or failure.In another aspect of the system and method, identifying actuarial datacorresponding to prior satellite loss events or failure eventssubstantially corresponding to the at least one satellite loss event orfailure event considers an agreed value of investment based on a setfinancial instrument value. In another aspect of the system and method,identifying actuarial data corresponding to prior satellite loss eventsor failure events substantially corresponding to the at least onesatellite loss event or failure event considers an intrinsic value ofinvestment based on recognized value metrics or methodologies. Inanother aspect of the system and method, the final pool of investors andthe adjusted value of their investment in the Satellite operator and thefinal insured amount at the time of attachment of risk is determined. Inanother aspect of the system and method, the at least one satellite lossevent or failure event for a satellite is a total loss. In anotheraspect of the system and method, the at least one satellite loss eventor failure event for a satellite is a partial loss. In another aspect ofthe system and method, the at least one satellite loss event or failureevent for a satellite is a reduction in expected lifetime. In anotheraspect of the system and method, the at least one satellite loss eventor failure event for a satellite is a reduction in available power.

The foregoing specific aspects are illustrative of those which can beachieved and are not intended to be exhaustive or limiting of thepossible advantages that can be realized. Thus, the objects andadvantages will be apparent from the description herein or can belearned from practicing the invention, both as embodied herein or asmodified in view of any variations which may be apparent to thoseskilled in the art. Accordingly the present invention resides in thenovel parts, constructions, arrangements, combinations and improvementsherein shown and described.

BRIEF DESCRIPTION OF THE DRAWINGS

The foregoing features and other aspects of the invention are explainedin the following description taken in conjunction with the accompanyingfigures wherein:

FIG. 1 illustrates a system according to an example embodiment;

FIG. 2 illustrates relationships between parties in a system accordingto an example embodiment;

FIG. 3 illustrates steps in a method according to an example embodiment;

FIG. 4 illustrates steps in a method according to an example embodiment;

FIG. 5 illustrates steps in a method according to an example embodiment;and

FIG. 6 illustrates steps in a method according to an example embodiment.

It is understood that the drawings are for illustration only and are notlimiting.

DETAILED DESCRIPTION OF THE DRAWINGS

In the various described embodiments, systems and methods provideinsurance to protect against loss of investment value of a shareholderor bondholder of a satellite operator with publicly or privately tradedsecurities resulting from catastrophic loss or failure of a satellite atlaunch or while in orbit.

Differences from Prior Forms of Protection

The systems and methods of the various described embodiments aredifferent from other prior or known forms of protection. By way ofexample, in one or more embodiments, the system and method is designedfor financial investors in publicly and privately traded satelliteoperator companies (although it is not limited to this class ofinsured).

In one or more embodiments, the system and method is offered to all ornearly all investors creating an insured pool or group, thereby reducingpotential insurance capacity issues (i.e. numerous individual investorsseeking more insurance than is available with respect to the same risk,or multiple potential insureds using different policy terms andconditions). The placement process may be unique in that it entails theaggregation of insureds by an offer to subscribe to a particularplacement during a predetermined period of time, such as 30-90 daysbefore launch or, for in-orbit insurance, such as 30-90 days beforeannual expiry. The terms of the participation of investors asrepresented by the agent would be embodied in a separate investor agencyagreement. The insurance could be placed in conjunction with thesatellite operator placement, but it is not necessarily so placed.

In one or more embodiments, coverage under the system and method may beplaced in the financial products as well as the satellite propertyinsurance underwriting markets.

In one or more embodiments, insurance under the system and method may beavailable for launch and initial in-orbit placement and for in-orbitrisks while a satellite is in-orbit.

In one or more embodiments, coverage under the system and method mayapply to satellites (or a payload thereof) that satellite operators ownor to satellites that satellite operators lease or purchase all (or asignificant proportion) of the capacity thereon.

In one or more embodiments, insurance under the system and method may berated based on historical share and bond performance after a satelliteloss or failure versus on the loss experience for the satellite and, inthe case of launch coverage, its launch vehicle.

In one or more embodiments, loss under the system and method may bedetermined based on one of the following: (1) the difference betweenaverage share/bond performance for a period of time immediately beforeand after a satellite loss or failure; (2) an agreed value of theinvestment based on a set share or bond price; or (3) the intrinsicvalue of the stock or debt of the company based on recognized valuemetrics or methodologies.

In one or more embodiments, types of loss scenarios covered under thesystem and method may be varied, depending on the insured'srequirements: total loss only; total/constructive total loss;comprehensive; total/constructive total/partial loss; reduction inexpected lifetime; reduction in available power.

In one or more embodiments, the period of coverage under the system andmethod may be varied, depending on the insured's requirements: e.g.,launch through separation; launch through in-service acceptance, launchplus one year, annual for in-orbit.

In one or more embodiments, salvage available to insurers under thesystem and method may be different from satellite property insurers asit would be based on a transfer of the shares or bonds for which a losshas been paid or a sharing of any future upside in share/bondperformance, such as in the case of partial loss coverage.

In one or more embodiments, separate arrangements under the system andmethod may be structured with insurers and one or more distressedequity/debt fund buyers to facilitate the sale of any shares/bonds thatinsurers have received as salvage.

In one or more embodiments, separate arrangements under the system andmethod may be arrived at with satellite manufacturers and launchservices providers to assist in the description of the risk atunderwriter presentations (either in conjunction with the satelliteoperator placement or separately) and in the presentation and settlementof any claim.

In one or more embodiments, separate agreements under the system andmethod may be developed with the satellite operator whereby the operatorwould share loss formulations, provide insureds with notices ofoccurrence and proofs of loss and assist in claims settlement.

Example Methods to Identify Actuarial Data

In one or more embodiments, the system and method may use variousdifferent methods to identify actuarial data corresponding to priorsatellite loss events or failure events. By way of example, the systemand method may undertake a study of share/bond performance of satelliteoperators based on performance of shares/bonds before and aftersatellite loss or failure. Such a study may involve total and partiallosses and also different size satellite operators (those that operateone or a small number of satellites versus those that operate a largefleet). Such a study may also consider performance of shares/bonds aftersuccessful launch to determine value enhancement. Such a study may alsorun sensitivity analyses based on different criteria to determinewhether additional factors influence share/bond performance (e.g.,market served, competition, capacity pricing, availability ofreplacement capacity) and weight factors based on an agreed formula.

In one or more embodiments, the system and method may also determine apremium rating based on historical investment loss data not onsatellite/launch vehicle failure data (e.g., rate for multi-satelliteoperator should be far less than for a single satellite operator whetheror not satellite is considered risky).

In one or more embodiments, the system and method may retain ashare/bond-tracking agent or consultant to provide and maintain currentlists of satellite operator shareholders and bondholders of publicly andprivately traded satellite operators.

In one or more embodiments, the system and method may conduct anassessment of distressed value (post loss) and set up a facility forinsurers to trade back bonds to vulture funds, for a commission payableby insurers to placing broker.

Example Methods to Place Coverage

In one or more embodiments, the system and method may use variousdifferent methods to place coverage with an underwriting pool. By way ofexample, in one or more embodiments, the system and method may selectlicensed, experienced space insurance broker(s) to place insurance. Inone or more embodiments, the system and method may also identify leadunderwriter(s) knowledgeable in financial risks and satellite coverages.In one or more embodiments, the system and method may establish a poolof rated underwriters to market placements. In one or more embodiments,the system and method may monitor launch activity involving publicly andprivately traded satellite operators and timely approach prospectiveinsureds. In one or more embodiments, the system and method may identifyrisk profile, involving coverage period, loss formulation and insuredvalue. In one or more embodiments, the system and method may establishan insured group. In one or more embodiments, the system and method maynegotiate investor agency agreements regarding identifying insuredparties, insured securities, relative shares/premium obligations, lossformula and obligations of agent. In one or more embodiments, the systemand method may coordinate underwriter presentations independently or inconjunction with the satellite operator. In one or more embodiments, thesystem and method may develop an appropriate rating, conclude thepolicy, and complete placement.

Example Methods for Policy Development

In one or more embodiments, the system and method may use variousdifferent methods to develop the underlying policies. By way of example,in one or more embodiments, the system and method may develop modular,standard form policy adaptable to various risk profiles. In one or moreembodiments, the system and method may develop an approach to definitionof what constitutes loss or failure matching or based on satelliteoperator's insurance (or default to or cross-reference satelliteoperator's policy). In one or more embodiments, the system and methodmay tailor conditions standard in satellite property policies to natureof insured group (e.g., no due diligence condition and limited insureds'duties regarding notice of occurrence and proof of loss (link tosatellite operator obligations under separate satellite operatorinsurance)). In one or more embodiments, the system and method mayprovide a form of breach of warranty cover whereby the insured group mayrely on the launch or in-orbit insurance policy of the satelliteoperator but not be deemed coverage under its separate investmentprotection insurance in the event an act or omission of the satelliteoperator voids or nullifies its own coverage. In one or moreembodiments, the system and method may provide that salvage for insurersupon payment of the claim would be the shares or bonds held by theinsured in the event of full coverage and total/constructive total loss(or no salvage or shared/all upside if shares/bonds trade up over timefor partial losses, if covered). This may also include creation of adistressed sale facility with a vulture fund. In one or moreembodiments, the system and method may consider creating a standard formagreement with a satellite operator for coordinated placement of thepolicy and satellite operator launch/in-orbit insurance includingplacement strategy, underwriter presentations, determination of lossdefinitions and responsibilities for preparing and filing notices ofoccurrence and proofs of loss.

Example System

Referring to FIG. 1, an example of system 100 according to oneembodiment of the invention includes satellite operator 102, satellitelaunch services provider 104, satellite builder/manufacturer 106,investors 108, underwriter(s) 110, and shared risk pool/underwritingmarket 112. In system 100, satellite operator 102, satellite launchservices provider 104, satellite builder/manufacturer 106, investors108, underwriter(s) 110, and shared risk pool/underwriting market 112are electronically interconnected by network 114. Although notillustrated, satellite operator 102, satellite launch services provider104, satellite builder/manufacturer 106, investors 108, underwriter(s)110, and shared risk pool/underwriting market 112 include various formsof computers and associated peripherals and components. These may begeneral or special purpose computers, each with one or more centralprocessing units (CPU), fixed or removable storage for program code andprogram data (hard drive, floppy drive, CD, DVD, etc.), volatile andnon-volatile memory, I/O devices (keyboards, display screens, printers,pointing devices, etc.), and network interface devices (WiFi, Ethernet,Modem, etc.). Network 114 may be one or more of a local area network(LAN), a wide area network (WAN), the Internet, or the public switchedtelephone network (PSTN).

Referring to FIG. 2, some of the relationships of the entitiesidentified in FIG. 1 are illustrated. Investors 108 make or placeinvestments with satellite operators 102, in the form of stock purchasesor subscriptions, or bond purchases. Satellite operators 102 enter intosatellite purchase agreements with satellite builders/manufacturers 106.Satellite operators 102 also enter into launch services agreements withsatellite launch service providers 104. Satellite operators 102 alsoobtain launch and in-orbit insurance from insurance market 112,procuring insurance from underwriters through the services of spaceinsurance brokers 110. Investors 108 also obtain investment protectioninsurance from insurance market 112, procuring insurance fromunderwriters through the services of space insurance brokers 110. Spaceinsurance brokers 110 place the policies of investors 108 and satelliteoperators 102 with investment protection policy insurers 202 andsatellite operator policy insurers 204 respectively.

Referring to FIGS. 1 and 3, in an example embodiment, at step 302,system 100 identifies financial investors 108 in a satellite operatorcompany 102.

At step 304, system 100 identifies and/or proves that investors 108 havean insurable interest.

At step 306, system 100 quantifies the type and value of loss to beinsured.

At step 308, system 100 determines the type of coverage. Types ofcoverage may include but are not limited to: total loss only; total lossand constructive total loss; and total loss and partial loss.

At step 310, system 100 determines the coverage period. Coverage periodsmay include but are not limited to: launch only; post-separation only;launch and post-separation for up to 1 year.

At step 312, system 100 determines the type of policy, using informationdetermined and identified in steps 302-310.

At step 314, system 100 determines whether satellite operator 102 willcooperate in placement of the policy.

If at step 314, system 100 determines that satellite operator 102 willcooperate, then at step 316, system 100 issues a follow-form policy.FIG. 4 illustrates additional steps involved in the issue of afollow-form policy.

If at step 314, system 100 determines that satellite operator 102 willnot cooperate, then at step 318, system 100 issues a stand-alone policy.FIG. 5 illustrates additional steps involved in the issue of astand-alone policy.

Referring to FIGS. 1 and 4, after system 100 issues a follow-form policyat step 316, system 100 determines at step 402 whether there has been afailure event or loss event.

If at step 402 system 100 determines that there has not been a failureevent or loss event, then at step 404 system 100 determines whether thepolicy has expired.

If the policy has not expired, then system 100 loops to step 402. If thepolicy has expired, then at step 406 the process ends.

If at step 402 system 100 determines that there has been a failure eventor loss event, then at step 408 system 100 determines whether thefailure event or loss event is within the scope of the investmentprotection policy and the satellite operator policy.

If the failure event or loss event is not within the scope of theinvestment protection policy and the satellite operator policy, thensystem 100 loops to step 402.

If the failure event or loss event is within the scope of the investmentprotection policy and the satellite operator policy, then at step 410,investor(s) 108 file claims under the investment protection policy. Theinvestor claims are based on proof of loss submitted by the satelliteoperator under the satellite operator policy.

At step 412, system 100 determines whether the claim is payable underthe investment protection insurance and under the satellite operatorpolicy.

If the claim is not payable under the investment protection insuranceand under the satellite operator policy, no claim is paid at step 414for the failure event or the loss event, and system 100 loops to step402.

If the claim is payable under the investment protection insurance andunder the satellite operator policy, then at step 416, system 100determines whether the issuer of the investment protection insurance hassalvage rights.

If the issuer of the investment protection insurance has salvage rights,then at step 418, the financial instruments are transferred to theinsurer or any future upside in financial instrument performance may beshared, in either case, as salvage and the process ends at step 406.

If the issuer of the investment protection insurance has no salvagerights, then the process ends at step 406.

Referring to FIGS. 1 and 5, after system 100 issues a stand-alone formpolicy at step 318, system 100 determines at step 502 whether there hasbeen a failure event or loss event.

If at step 502 system 100 determines that there has not been a failureevent or loss event, then at step 504 system 100 determines whether thepolicy has expired.

If the policy has not expired, then system 100 loops to step 502. If thepolicy has expired, then at step 506 the process ends.

If at step 502 system 100 determines that there has been a failure eventor loss event, then at step 508 system 100 determines whether thefailure event or loss event is within the scope of the investmentprotection policy.

If the failure event or loss event is not within the scope of theinvestment protection insurance policy, then system 100 loops to step502.

If the failure event or loss event is within the scope of the investmentprotection policy, then at step 510, investor(s) 108 file a notice ofoccurrence and proof of loss under the investment protection insurancepolicy.

At step 512, system 100 determines whether the claim is payable underthe investment protection insurance policy.

If the claim is not payable under the investment protection insurancepolicy, no claim is paid at step 514 for the failure event or the lossevent, and system 100 loops to step 502.

If the claim is payable under the investment protection insurancepolicy, then at step 516, system 100 determines whether the issuer ofthe investment protection insurance policy has salvage rights.

If the issuer of the investment protection insurance policy has salvagerights, then at step 518, the financial instruments are transferred tothe insurer or any future upside in financial instrument performance maybe shared, in either case, as salvage, and the process ends at step 506.

If the issuer of the investment protection insurance has no salvagerights, then the process ends at step 506.

Referring to FIGS. 1 and 6, another example method begins at step 602with system 100 identifying events of potential satellite loss orfailure. There are many possible loss or failure events, some of whichmight include: failure before hold-down release; failure during mainengine burn; booster separation failure; on-orbit check-out failure;total on-orbit power or propellant loss; and partial on-orbit power orpropellant loss.

At step 604, system 100 then identifies a plurality of individualinvestors 108 who have invested in the satellite operator 102 and areinterested in purchasing investment loss mitigation insurance.

At step 606, system 100 identifies actuarial data corresponding tosimilar events of satellite loss or failure.

At step 608, system 100 develops an investment loss mitigation insurancepolicy based on actuarial data corresponding to similar events ofsatellite loss or failure.

At step 610, system 100 offers the investment loss mitigation insurancepolicy to the identified financial investors 108.

At step 612, system 100 places the investment loss mitigation insurancepolicy for subscribing investors 108 with an underwriting pool 110.

Once the policy has been placed, then at step 614 system 100 determineswhether a loss or failure event has occurred.

If at step 614 system 100 determines that no loss or failure event hasoccurred, then at step 616, system 100 determines whether the policy hasexpired. If the policy has not expired, system 100 loops to step 614. Ifthe policy has expired, system 100 ends at step 618.

If at step 614 system 100 determines that a loss or failure event hasoccurred, then at step 620, system 100 determines whether the loss orfailure event is within the scope of the policy. If the loss or failureevent is not within the scope of the policy, then system 100 loops tostep 614.

If the loss or failure event is within the scope of the policy, then atstep 622 system 100 pays investors 108 under the policy terms for theloss or failure event.

At step 624, system 100 determines whether the policy issuer has anysalvage rights, and if not, the process ends.

If at step 624, system 100 determines whether that the policy issuer hassalvage rights, then at step 626 the financial instruments aretransferred to the underwriter or any future upside in financialinstrument performance may be shared, in either case, as salvage, andthe process ends.

In the various embodiments described herein, there has been reference toinvestment protection insurance and investment loss mitigationinsurance. There is no conceptual difference between the two and the useof two different terms is not intended to imply a difference.

Although illustrative embodiments have been described herein in detail,it should be noted and will be appreciated by those skilled in the artthat numerous variations may be made within the scope of this inventionwithout departing from the principle of this invention and withoutsacrificing its chief advantages.

Unless otherwise specifically stated, the terms and expressions havebeen used herein as terms of description and not terms of limitation.There is no intention to use the terms or expressions to exclude anyequivalents of features shown and described or portions thereof and thisinvention should be defined in accordance with the claims that follow.

The invention claimed is:
 1. A method for mitigating risk of satelliteinvestment loss, the method comprising: identifying by a computingsystem having at least one processor and at least one memory at leastone satellite loss event or failure event for a satellite that will beoperated by a satellite operator company; identifying by the computingsystem actuarial data corresponding to prior satellite loss events orfailure events substantially corresponding to the at least one satelliteloss event or failure event, wherein the identified actuarial dataconsiders historic differences between average financial performance ofdebt or equity instruments of satellite operator companies for a periodof time immediately before and immediately after a satellite loss eventor failure; developing by the computing system an investment lossmitigation insurance policy based at least in part on the identifiedactuarial data; offering by the computing system the investment lossmitigation insurance policy to financial investors holding debt orequity instruments of the satellite operator company; and placing by thecomputing system the investment loss mitigation insurance policy with anunderwriting pool.
 2. A method according to claim 1, further comprisingidentifying an actual satellite loss event or failure event; determiningwhether the actual satellite loss event or failure event is covered bythe investment loss mitigation insurance policy; and responsive todetermining whether the actual satellite loss event or failure event iscovered, paying the financial investors.
 3. A method according to claim1, further comprising identifying an actual satellite loss event orfailure event; determining whether the underwriting pool has salvagerights under the investment loss mitigation insurance policy; andresponsive to determining whether the underwriting pool has salvagerights, transferring financial instruments to the underwriting pool assalvage.
 4. A method according to claim 1, further comprisingidentifying an actual satellite loss event or failure event; determiningwhether the underwriting pool has salvage rights under the investmentloss mitigation insurance policy; and responsive to determining whetherthe underwriting pool has salvage rights, sharing any future upside infinancial instrument performance as salvage.
 5. A method according toclaim 1, wherein the at least one satellite loss event or failure eventis a launch failure.
 6. A method according to claim 1, wherein the atleast one satellite loss event or failure event is a launch loss.
 7. Amethod according to claim 1, wherein the at least one satellite lossevent or failure event is an in-orbit failure.
 8. A method according toclaim 1, wherein the at least one satellite loss event or failure eventis a premature in-orbit loss of capacity.
 9. A method according to claim1, wherein offering the investment loss mitigation insurance policy tofinancial investors occurs a predetermined number of days before launch.10. A method according to claim 1, wherein offering the investment lossmitigation insurance policy to financial investors occurs aftersuccessful in-orbit check-out and a predetermined number of days beforeannual expiry.
 11. A method according to claim 1, wherein theunderwriting pool is at least partially in a financial products market.12. A method according to claim 1, wherein the underwriting pool is atleast partially in a satellite property insurance underwriting market.13. A method according to claim 1 further comprising determining thefinal pool of investors and the adjusted value of their investment inthe satellite operator company.
 14. A method according to claim 1further comprising determining the final insured amount at the time ofattachment of risk.
 15. A method according to claim 1, wherein the atleast one satellite loss event or failure event for a satellite is atotal loss.
 16. A method according to claim 1, wherein the at least onesatellite loss event or failure event for a satellite is a partial loss.17. A method according to claim 1, wherein the at least one satelliteloss event or failure event for a satellite is a reduction in expectedlifetime.
 18. A method according to claim 1, wherein the at least onesatellite loss event or failure event for a satellite is a reduction inavailable power.
 19. A computer-readable medium having computerexecutable software code stored thereon, the code for mitigating risk ofsatellite investment loss the code comprising: code to identify at leastone satellite loss event or failure event for a satellite that will beoperated by a satellite operator company; code to identify actuarialdata corresponding to prior satellite loss events or failure eventssubstantially corresponding to the at least one satellite loss event orfailure event wherein the identified actuarial data considers historicdifferences between average financial performance of debt or equityinstruments of satellite operator companies for a period of timeimmediately before and immediately after a satellite loss event orfailure; code to develop an investment loss mitigation insurance policybased at least in part on the identified actuarial data; code to offerthe investment loss mitigation insurance policy to financial investorsholding debt or equity instruments of the satellite operator company;and code to place the investment loss mitigation insurance policy withan underwriting pool.
 20. A programmed computer for mitigating risk ofsatellite investment loss, comprising: a memory having at least oneregion for storing computer executable program code; and a processor forexecuting the program code stored in the memory, wherein the programcode comprises: code to identify at least one satellite loss event orfailure event for a satellite that will be operated by a satelliteoperator company; code to identify actuarial data corresponding to priorsatellite loss events or failure events substantially corresponding tothe at least one satellite loss event or failure event wherein theidentified actuarial data considers historic differences between averagefinancial performance of debt or equity instruments of satelliteoperator companies for a period of time immediately before andimmediately after a satellite loss event or failure; code to develop aninvestment loss mitigation insurance policy based at least in part onthe identified actuarial data; code to offer the investment lossmitigation insurance policy to financial investors holding debt orequity instruments of the satellite operator company; and code to placethe investment loss mitigation insurance policy with an underwritingpool.